Huawei’s growing demand pressurizes Nvidia for sudden visit to China

Nvidia CEO – Jensen Huang recently made a sudden visit to China amid growing demand for Huawei products in the country. Notably, this is the first trip in four years of the Nvidia executive to the native region to chase new customers.

According to the details, Jensen initially visited Nvidia sites in Shenzhen, Shanghai, and Beijing to appear at the annual meeting. He dressed up in colorful traditional attire and danced with other staff members to entertain the attendees.

Some Chinese experts predicted that the immense demand for Huawei has pulled Nvidia attention to China and pressurized the CEO to visit the region. Another reason could be the U.S. controls that continue to hit Nvidia’s AI chip sales in the native market.

In the past couple of years, the U.S. authorities prohibited some high-end Nvidia AI chips from trading in China. Though the company brought in a modified version for its Chinese customers, it didn’t attract users much as the overall computing power decreased by 80% compared to the original version.

On the flip side, China turned to Huawei and other native firms as it believes that these companies can produce more capable chips, without defying the U.S. export rules. These factors had a significant impact on the respective chip maker.

Some other sources claimed that China is no longer interested in dealing with high-cost Nvidia chipsets and will reduce orders in 2024. Thus, Nvidia is making efforts to gain back its customers in one of the major markets.

Huawei Chips Growth:

The Chinese tech giant is focusing on boosting the Kirin chip production this year. Ultimately, this important move will open new doors of achievement for Huawei with excellent share scoring in the smartphone market.

Up to this point, we heard a few new Kirin processors are in the making. Perhaps, the company might unveil them later this year with impressive performance and outstanding capabilities.

Another reason behind Jensen coming to China could be – Nvidia trades around 80% of autonomous driving chips in China and this time, Huawei is putting efforts to pace ahead in this race. Hence, the American chip maker might be looking for new bonds that could let it stick on the ground with better shares.

(Source)